GBPUSD Technical Analysis: The GBP/USD pair experienced a strong decline after a violent upward trend that peaked near 1.3180. This recent decline was due to strong US jobs data that strengthened the dollar, along with a slowdown in UK services sector growth according to the PMI. This shifted market risk appetite, with traders turning to the dollar as a more stable haven asset in the short term.
GBPUSD Technical Analysis: Price Overview – H1 Candlesticks
- Daily High 1.28455
- Daily Low 1.27689
- Current Price 1.27708
The price is currently trading at a daily low and approaching strong support areas at 1.2744, making these levels crucial for future scenarios.
Technical Indicators Analysis
General Trend:
The short-term trend is clearly bearish, as the price is trading below all moving averages, which are sharply downward, reflecting a clear seller dominance.
MACD Indicator:
Indicates continued negative momentum, despite the strength of the selling bars beginning to decline. There is no bullish crossover signal yet.
Stochastic Oscillator
The indicator is in the oversold zone below the 20 level, indicating a potential temporary rebound, but this requires strong confirmation candles for reversal trading.
GBP/USD Trading Forecasts and Recommendations
Positive Scenario (Technical Rebound):
If the price rebounds from 1.28222 and holds above it, we may see an upward trend towards 1.28579 and then 1.28694 as initial targets. This scenario requires improved momentum and the appearance of reversal candles.
Negative scenario (continued decline):
If the 1.27449 level is broken, the pair may continue its decline towards 1.26974 and then 1.26755, driven by economic pressures and a rising dollar.
Trading strategies based on Buy/Sell levels
| GBPUSD | In case of buying | in case of selling |
| Entry point | 1.28222 | 1.27449 |
| Target Point 1 (TP1) | First resistance: 1.28579 | First support: 1.26974 |
| Target Point 2 (TP2) | Second resistance: 1.28694 | Second support : 1.26755 |
| Stop Loss (SL) | 1.27449 | 1.28222 |
The GBP/USD pair is currently trading near critical support levels, with sellers clearly in control in the short term. Despite oversold signs, the continued downward momentum makes selling more plausible if 1.27449 is broken. It is important to monitor any surprise statements from the Bank of England or the Federal Reserve that could influence the upcoming trend.
